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Server racks with red cables and network equipment in a datacentre
✓ The Guardian AustraliaPower & Policy

Victoria bans datacentres from homes, requires renewable power

Victoria's government is banning datacentres from residential areas and requiring them to use renewable energy under new state rules.

Premier Ben Carroll will release Victoria's sustainable datacentre action plan on Tuesday. The government claims these are the country's strongest and clearest rules for the industry.

Datacentres will be banned from residential areas, schools, and childcare centres. Datacentres must maintain a 150-metre buffer zone from new homes.

New facilities must source their own renewable energy and pay for connection costs and network upgrades. Datacentres must also use recycled or non-drinking water for cooling or offset water usage.

Datacentres must give back to communities through jobs, TAFE training, parks, and local employment during construction. The plan comes as opposition grows in Labor-held seats.

This is especially true in Footscray and Geelong, where datacentre expansions are planned.

150 metres from new homes
Buffer zone
Footscray and Geelong
Opposition areas
Tuesday
Announcement date

Why it mattersVictoria is tightening environmental and community standards for datacentre expansion, balancing economic benefits against residential and infrastructure concerns.

AustraliaVictorian residents and communities will have stronger protections against datacentre sprawl, while the state shapes how AI and tech infrastructure develops locally.

✓ Claims checked against the source. checked 3 d ago

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